According to the data, general insurance business underwriting results reduced significantly from a marginal profit of Sh62.45 million in Q2 2020 to a loss of KES 1.46 billion in Q2 2021./ COURTESY NAIROBI, Kenya 21 Sep 2021 – Insurance premiums went up by 19 percent in the second quarter of 2021 to hit Sh144.02 billion compared to Sh121.04 billion recorded over the same period last year, the Insurance Regulatory Authority (IRA) has revealed
General insurance business remained the largest contributor to industry insurance premium contributing 59.3 percent of the total premiums at Sh85.36 billion while long-term insurance premiums stood at Sh58.66 billion.
According to the data, general insurance business underwriting results reduced significantly from a marginal profit of Sh62.45 million in Q2 2020 to a loss of KES 1.46 billion in Q2 2021.
The decline was attributed to a high increase in loss ratios due to relaxation of restrictions that had been imposed on travel due to COVID-19 pandemic.
Claims incurred in the general insurance business rose by 15 percent standing at Sh32.38 billion during the period under review.
“The high premium volume classes of general insurance business contributed the largest proportions of incurred claims; medical (38.7 percent), motor private (29.8 percent), and motor commercial (22.8 percent). Motor classes of insurance business comprised of 52.7 percent of total claims incurred compared to their contribution of 27.8 percent of the total premium under general insurance business,” the report states.
The claims paid increased by 16.9 percent to Sh30.60 billion compared to Sh26.17 billion paid in Q2 2020. Medical, motor private, and motor commercial had the highest amounts of paid claims at 39.3 percent, 26.9 percent and 21.5 percent respectively of total industry paid claims under general insurance business.
In the period under review, UAP Insurance maintained the market lead under the general insurance market with an 8.6 percent market share followed by CIC General Insurance and GA Insurance at 8 percent and 7.7 percent respectively.
On the other hand, companies in the long-term business made Sh54.57 billion a 22.9 percent increase compared to the same period last year.
In the long-term business, Britam Life Assurance maintained its lead, with 21.3 percent market share followed by ICEA LION Life Assurance at 16.2 percent and Jubilee insurance company with 11.5 percent market share in the period under review.
The insurance industry asset base grew by 11 percent to Sh819.65 billion.“Investments in income-generating assets grew by 12.9 percent from Sh618.04 billion reported […]